Safeway 2009 Annual Report Download - page 24

SAFEWAY INC. AND SUBSIDIARIES
The following table summarizes Safeway's stores by size at year-end 2009:
Square footage
Number
of stores
Percent
of total
Less than 30,000 231 13%
30,000 to 50,000 716 42
More than 50,000 778 45
Total stores 1,725 100%
Store Ownership At year-end 2009, Safeway owned 41% of its stores and leased its remaining stores. The Company
prefers ownership because it provides control and flexibility with respect to remodeling, expansions, closures and
financing terms.
Merchandising Safeway’s operating strategy is to provide value to its customers by maintaining high store standards
and a wide selection of high-quality products at competitive prices. To provide one-stop shopping for today’s busy
shoppers, the Company emphasizes high-quality produce and meat and offers many specialty items through its various
specialty departments.
Safeway is focused on differentiating its offering with high-quality perishables. The Company believes it has developed a
reputation for having the best produce in the market, through high-quality specifications and precise handling
procedures, and the most tender and flavorful meat, through the Company’s Rancher’s Reserve Tender Beef offering. In
addition, Safeway has developed a variety of new items in the deli/food service department, including Signature Cafe
sandwiches, soups and salads that provide meal solutions to today’s busy shoppers.
Safeway has continued to develop its premium line of Consumer Brand products. Hundreds of items have been
developed since 1993 under the “Safeway SELECT” banner. The award-winning Safeway SELECT line offers premium
quality products that the Company believes are unique to the category and deliver a distinctive twist to foods through
special ingredients, recipes, and world-inspired cuisines. The Safeway SELECT line of products includes: artisan baked
goods, sparkling ciders and lemonades, salsas, whole bean coffees, frozen pizzas and entrees, fresh and dry pastas and
sauces, and an extensive array of ice creams, hors d'oeuvres, and desserts.
The Lucerne brand has been producing quality dairy products for over 100 years. It offers over 400 items.
In 2005, Safeway introduced the line of OORGANICS food and beverage products. Everything in the OORGANICS line,
which includes more than 300 items, comes from certified organic growers or processors and is USDA-certified
organic. The OORGANICS line includes, among other products: milk, chicken, salads, juices and entrees.
Safeway launched Eating Right, a line of great-tasting, better-for-you products, in 2007. Eating Right products span more
than 20 categories, including frozen entrees, soups, produce and salad dressings. In 2008, one of the key initiatives for
Eating Right was the launch of Eating Right Kids. The Eating Right Kids line includes, among other products: bread,
vegetable and fruit snacks, kids fruit juices and vitamin water, cereal and lunch boxes.
In May 2008, “mom to mom”, a baby care brand, was launched. The brand offers 86 items to care for a baby’s needs
including diapers, wipes, infant formula and toiletries.
Bright Green, a home care brand, launched in October 2008. With over 20 items across a variety of home care categories
such as laundry, lighting, home cleaning and paper goods, Bright Green enables consumers to practice a greener lifestyle
without sacrificing quality.
In January 2009, waterfront BISTRO, restaurant quality seafood, was launched. The brand features a line of prepared
seafood entrees.
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